ETHANOL HITS RECORD PRODUCTION, SHIELDING CONSUMERS FROM HIGH OIL PRICES

The Brazilian bioenergy sector is entering the 2026-27 harvest with expectations of record ethanol production, with an additional 4 billion liters set to reach the market, an amount comparable to the country’s total gasoline imports in 2025. This growth reinforces ethanol’s role as a competitive alternative to oil, enhancing energy security and shielding consumers from global price swings without relying on subsidies. Currently, ethanol (hydrous and anhydrous) represents over 30 billion liters in gasoline equivalent and remains priced below 73% of gasoline across most of the country, generating estimated savings of BRL 5 billion in 2025. This progress builds on decades of public policies, including Proálcool and RenovaBio, which have driven production gains and attracted new investment to the sector.
Source: Bioenergia Brasil, União Nacional do Etanol de Milho (UNEM) e União da Indústria de Cana-de-Açúcar e Bioenergia (UNICA). (*Translated by Ia Niani)